MNI BRIEF: China FX Market Operated Smoothly In August - SAFE

China’s foreign exchange market operated smoothly in August, as cross-border receipts and payments by non-banking sectors reached USD1.3 trillion, an 8% year-on-year increase, Li Bin, deputy director and spokesperson at the State Administration of Foreign Exchange, said on Friday.

Responding to reporters’ questions, Li noted  August saw net cross-border capital inflows total USD3.2 billion, while banks recorded a surplus of USD14.6 billion in FX settlement and sales, underscoring general stability in supply and demand.

China’s reliance on ASEAN countries to reroute goods to the U.S. in a bit to skirt tariffs is unsustainable amid rising U.S. transshipment curbs, policy advisors and industry insiders told MNI. (See MNI: China's Transshipment Strategy Unsustainable)